Iron ore shortage expected by 2013

[] — The iron ore supply demand balance indicated a potential shortage would develop in sea borne iron ore by 2013/14, said Kumba Iron Ore.

This is as China’s and the world’s steel demand are seen as growing by 5.8% and 4.9% respectively between 2009 and 2018.

“Recent indications show that the ‘expected’ iron ore demand scenario is most likely to materialise,” said Kumba chief executive Chris Griffith.

On the supply side, China’s domestic supply is seen declining in product grades.

This will effectively reduce the iron unit to the steel mills as well as quantity since high-cost production mines have been shut down, he said.